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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (25736)	11/17/2006 6:56:27 AM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 78407

Err... this would request a long answer. First to assess would be the actual balance of miner production vs. industry consumption. Knowing that those numbers are hedonically corrected to reflect both political and/or industrial lobbys agendas. For instance, I still can read that the equilibrium price of silver shiuld be $6. Then, what I called the China trip-wire. You may add India. China faces a dilemma: - either urbanize and put industries close to the cities, at which time they need transport infrastructure to transport workers - or move those industries further in the country where people live. In any case, this means long-term heavy investment. Paired with a comparatively poor havens capacity. Capitalism being what it is, rich Chinese prefer to put their money on less risky adventures like buying the US havens. Once the olympic games will be over, I expect China to wake up with a Monday's headake. So, even if there is huge demand, currently, for raw materials, China can't unload those masses and transport them where they should be used. Up to a point, the researches are right IMVHO, longer term (I'll pass on pollution problems and discontent of Joe Six-Pack a la Chinese vs. new riches). We al know the markets are said to leasd business by 6 months. We are not there yet. Sell-side analysts play much shorter term, witness the GFMS interview 2 days ago. Buy silver (and all miners as there aren't enough silver co's). Up to the opening of yesterday to suck in the 5-7 investors. An average of 5% gain in 24 hours for the usual suspects. Inventory of zinc is nearing zero. What inventory? These numbers are warrants, in US terms "good for delivery" stamped papers. Does it reflects the World's availability? Doubt it. Should I have zinc at these prices, I wouldn't bother registering my stock with the LME and would sell it at any bidder, hopefully undeliverd, transport care of the buyer. Remains that, research papers make food for profits. And the beauty of it, as the markets have no memory (but chartists lines, which have become other trip-wires), the same papers can be used over and over again. Trying to keep it short. ROFL.